MENU

The lithium miners have stormed higher today

Whilst the market as a whole has bounced back strongly today thanks to Wall Street pushing higher, one group of shares in particular have stood out with big gains – the lithium miners.

Here is the state of play in the lithium industry during morning trade:

  • The Argosy Minerals Limited (ASX: AGY) share price is up 20% to 32.5 cents.
  • The Avz Minerals Ltd (ASX: AVZ) share price has climbed almost 17% to 28 cents.
  • The European Lithium Ltd (ASX: EUR) share price is nearly 8% higher at 21 cents.
  • The Galaxy Resources Limited (ASX: GXY) share price is up 11% to $3.20.
  • The Kidman Resources Ltd (ASX: KDR) share price is 9% higher to $1.85.
  • The Lepidico Ltd (ASX: LPD) share price has climbed 12.5% to 5.4 cents.
  • The Lithium Australia NL (ASX: LIT) share price is 12.5% higher at 18 cents.
  • The Mineral Resources Limited (ASX: MIN) share price is up 7% to $18.08.
  • The Orocobre Limited (ASX: ORE) share price has pushed 5.5% higher to $6.65.
  • The Pilbara Minerals Ltd (ASX: PLS) share price is 9% higher to 87 cents.

What happened?

It appears as though investors have flipped the risk-on switch overnight following the recovery in U.S. markets.

As the lithium miners are amongst the most risky shares on the market, they were heavily sold off during trade yesterday. But pleasingly for their shareholders, many of these shares have not only reversed these declines, but pushed even higher.

Should you buy the dip?

Whilst I am a big fan of some of these lithium miners and believe they have bright futures ahead of them, it is important to remember that they are some of the most volatile shares on the market. This makes them prone to strong gains in good times and sharp declines in bad times.

In light of this, I think they are largely unsuitable to the average investor. But for investors with a high tolerance for risk, I think it is hard to look beyond Galaxy Resources due to the strong free cash flow it is generating at its Mt Cattlin site.

If the lithium miners are too risky for your liking then check out these exciting tech shares.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We're living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That's why at The Motley Fool we've been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We've found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.